Lithuania: Economic growth accelerates in Q2
August 28, 2015
According to the more detailed data released by the National Statistics Office on 28 August, GDP rose 1.4% in annual terms in Q2. The reading represented a slight acceleration over the 1.3% increase seen in the first quarter, and marked an improvement over the 1.3% increase reported in the preliminary estimate.
On the domestic side of the economy, growth in private consumption increased from 3.9% in Q1 to 5.4% in Q2. Moreover, fixed investment jumped to an 11.6% increase in Q2 (Q1: +7.8% year-on-year). However, government consumption grew 1.4% in the second quarter, which was down from the 2.4% rise recorded in the previous quarter.
In the second quarter, exports grew 1.3%, which matched the previous quarter’s increase. Imports accelerated to a 9.1% increase (Q1: +7.9% year-on-year). As a result, the net contribution of the external sector to growth fell from minus 5.1 percentage points in the first quarter to minus 6.3 percentage points in the second quarter, which represented the lowest reading since Q1 2008.
On a quarter-on-quarter basis, GDP grew a seasonally- and working-day adjusted 0.7% in Q2, contrasting the 0.5% contraction observed in Q1.
Author: Dirina Mançellari, Senior Economist